Legal Question in Business Law in New York

LLC do not have shares or stock, rather LLCs have 'membership interest'. If the document does not properly describe the transaction it may be invalid on its face or invalidated in the future. There are also tax issues that need to be considered.

If this sale of the LLC's membership interest entails the transfer of money or if the LLC has importance / value, consider having a business attorney review the transaction.

Contrary to what you may think, generally, simple LLC buy-sell agreements are not costly. Ping me off line if you need help with this.

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

t e l : 2 1 2 -- 3 3 7 -- 9 8 3 7

Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein.

To answer your question more directly, some written transfer document such as an LLC Membership Interest Transfer Agreement will need to be created to move the interests (not shares really in an LLC) from one member to another. This agreement, however, does not need to be notarized nor witnessed in order to be binding, You just have to be able to show it was assented to.

If you are taking this seriously, I would definitely consult with legal counsel in private before moving forward. If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.